Marty Millner

Archive for February, 2010

Realtor weekend in Yardley, Bucks County, Pa.

Thought it would be fun spending some time,  letting  you know how I am spending the last weekend in February.

Last night, we had wonderful Indian food, at the Indian Garden restaurant, in Lower Makefield Township .  Indian Garden has become one of our favorite, local restaurants.  They offer a wide selection of traditional Indian dishes, and everything we have had, has been delicious.  I highly recommend that you try it.

Today, Saturday, I played basetball for about 3 hours this morning.  I normally get to play basketball 3 times a week.  I do try and stay in shape, so in addition to basketball, my wife and I work out with an incredible personal trainer, Dr. Kareem Samhouri, at his gym, Global Fitness, LLC, in Bucks County.  Kareem has a doctorate in physical therapy, so he can address any sports injuries I develop, as well as helping us stay in shape.

Obviously weekends are busy times, for realtors.  This weekend is no different for me.   I spent the afternoon showing a couple of first time home buyers, houses in both Bucks County, and Mercer County. 

Tomorrow, I am meeting with a client at 10:00 AM, to review a home inspection report, so we can draft a reply to the seller.  Following that, I will be spending several hours with another first time home buyer. 

The houses that I have listed, are getting some activity this weekend, so I am hopeful that I may have to negotiate an offer. 

I also listed a house yesterday, so I am in the process of entering all the information in the MLS, and arranging for professional photography, and getting started with the various websites, that feature my listings.

All in all, not a bad weekend, considering we survived another major snow storm in the east.

I think most of us, here in Yardley, and all over Bucks County, are ready for spring!

If you are in the real estate market, please don’t forget that there are just over 60 days, until the tax credit expires.  To qualify, you must have a contract in place, by April 30th, and close by June 30th.

10 steps to success for first time home buyers in Bucks County

As I write this post, here in Yardley, Pa, I am enduring the 4th major snow storm of the winter.  If you are not from the area, we have already set the record for the most snow, since the weather people started keeping records! 

Supposedly, the spring real estate market starts, just after the superbowl.  Because of the tax credit, which requires that a contract to purchase a home must be in place by April 30, 2010, and the closing occur by the end of June, 2010, while the weather permits, I have definitely noticed an increased level of activity.

As a way of thinking of the spring selling season, I thought it would be helpful to review 10 steps that can help first time home buyers, make sense out of the home buying process and decision.  In future posts, I will expand on each of these steps.

Establish Your Budget early

I suggest that before you even start looking at houses, you should have a clear understanding of what you can afford to pay each month.   When working with first time home buyers,  I want them to be aware that there are a couple of issues in this first step.  First, is what the lender will quailify you for, and more importantly, is what you are comfortable paying each month.  They are often not the same.  It is quite possible that you can obtain a mortgage for an amount that is more than what you are comfortable paying.  Set your budget realistically, before you start talking to lenders. 

Get Pre-Approved for a mortgage

This is another critical step that should be taken care of early in the process.  There is no sense in looking at homes, before you understand what you are comfortable paying, as well as knowing what sort of loan amount you will quailify for.  There should be no cost for this service, and it can be done by phone with a lender.  The lender will review all aspects of your financial situation, including income, debt, credit score, etc in order to determine what you can qualify for.  I can write an entire post on this process, but I will leave that for future posts.

Research Neighborhoods and Home Prices

Thanks to  the internet, this is a fairly easy thing to do.  You can search home prices, school districts, etc, on a variety of websites.  I also suggest actually driving through potential areas, to get a sense of how they feel to you.  Do you perfer being in a town, for example, or a more suburban location? 

Find a Local Realtor

Obviously I am biased, but I believe that it is extremely beneficial to buyers, to use the services of an experienced real estate professional.  I recently represented a client who actually called me to set up an interview with me, before he commited to doing anything.  As it turned out, he was looking to buy a house in the Yardley area, and also had a house to sell in New Jersey.  I think it is a good idea to interview agents first.  You should ask questions, and make sure that you are comfortable with the agent.  Often times buyers will walk into an open house, not realizing that the agent sitting the open house is there as an agent of the seller, actually representing the sellers best interests.  By interviewing agents before you start actually looking, you can help ensure that you will have a qualified professional looking at protecting your interests.  In general, the fee is paid by the seller, from the proceeds of the sale.

Start House Hunting

Now comes the exciting and fun part!  When working with buyers, I feel that buyers learn something with each house we see.  It is important to understand the market, values, etc.  The only way that happens, is to look at houses.  Again, it is easy for buyers to search for houses on-line, and as your realtor begins to understand your tastes, he or she should also suggest homes that are worth visiting.  It will not take you long to begin to get a good sense of what houses are priced realistically, and what houses are not priced realistically.  A common question that I am asked, especially by first time home buyers, is how many homes they should see.   Usually once we start the process, the answer becomes clear, when we find the right house.  First time home buyers tend to look at more homes, than buyers who re-locate all the time.  As I said, this is part of the learning process.  Generally your tastes become clearer the longer you look, and the more you see.

Focus on the Permanent Features of the House

Remember, cosmetic changes are generally easy to make.  This like paint and carpet can ultimately be changed.  Focus on the things that you feel that you must have.  For example, if a basement is important to you, don’t compromise.  You can’t realistically add a basement.  Pay attention to the lot, the view, style of house, square footage, etc. 

Ask Plenty of Questions.

I can’t emphasize this point enough.  I really love working with first time home buyers, and I encourage them to ask every question they can think of.  There is no such thing as a stupid question, in my mind.  Becuase, as realtors, we go through this process every day, we can overlook things that to us are obvious.  I love answering questions, and feel that my experience and knowledge should be a resource for those that I work with.

Make a Smart Offer

Again, with the help of an experienced agent, you should make smart offers.  You should expect to review other recent sales in the neighborhood in which you are buying, so you can feel comfortable that you are making a fair offer.  A fair offer has nothing to do with what the seller paid, or even in some cases, what the seller is asking.   In general, your offer will be based on several contingencies.  The most important of those contingencies are the mortgage, and home inspection contingincies.  That means that if you are not satisfied with the home inspection, you will have the right to cancel the contract, and any deposit money you have paid will be returned to you. 

Be Prepared to Negotiate

You should have a plan in mind, in the event the seller does not accept your initial offer, which is very common.  How much will you ultimately pay for the house?  Be prepared to walk away if the seller is not realistic.  At the end of the day, you must be comfortable with the outcome, or move on.  Right now it is a buyers market, which means that conditions are favorable for buyers.  There are more houses on the market, than there are buyers for those houses.  In most cases, buyers are in a strong negotiating position.

Home Inspection

I mentioned this briefly, earlier.  It is critical to get a good home inspection.  This happens after your offer has been accepted, and the cost will range from 500 to 600, depending on exactly what components of the inspection are required.  The inspector will evaluate the foundation, roof, electrical system, plumbing, HVAC, among other things.  Following the inspection, you have the right to cancel the contract, or negotiate with the seller, as to who will pay for any repairs, if there are things wrong with the house.  You should feel comfortable with this process, as well.

I believe that by following these steps, you will help ensure that you will understand the home buying process and will make smart decisions.

These steps were compliments of the HomeBuyingInstitute.  Check out the website for great information about the home buying process.

New Hope, PA Restaurant Week-March 21st-26th

Restaurant Week, March 21st-26th – New Hope

The Greater New Hope Chamber of Commerce has pulled together 17 restaurants in the local community for the first ever New Hope Restaurant Week. The event begins Sunday, March 21 and runs through Friday, March 26. The special includes a three- course, (prix-fixe) meal at any of the participating vendors for only $29.95.

The town’s people hope local and tourist diners take advantage of the promotion and patronize additional businesses in the historic river community. “We are thrilled to have received such great enthusiasm from our local restaurateurs,” said Carol Ann Della Penna, chamber spokeswoman. “New Hope is home to many of Bucks County’s finest restaurants, making this a rare opportunity to taste exceptional cuisine at an exceptional value.”
Sponsors of the week include E&J Gallo Winery, Effen Vodka, Stella Artois, National Penn Bank and Bucks Life Magazine.
 

Participating restaurants

Cafe Europa   215.862.9600         11 Market Place Logan Square New Hope, Pa
Golden Pheasant Inn   610.294.9595         763 River Road Erwinna, PA  www.goldenpheasant.com
Havana     215.862.9897           105 South Main St. New Hope, PA  www.havananewhope.com
Italian Cucina    215.862.3818     95 South Main St. New Hope, PA  www.cucinanewhope.com
Karla’s     215.862.2612     5 West Mechanic St. New Hope, PA  www.karlasnewhope.com
Marcella’s     215.862.1700     7 East Ferry St. New Hope, PA  www.marcellasrestaurantnbar.com
Marsha Brown      215.862.7044     15 South Main St. New Hope, PA  www.marshabrownrestaurant.com
Martine’s River House     215.862.2966     14 East Ferry ST & River New Hope, PA  www.martinesriverhouserestaurant.com
Mother’s Wine Bar     215.862.5857     34 North Main St. New Hope, PA  www.mothersnewhope.com
Sandbar at 90 Main     215.862.3030     90 Main St. New Hope, PA  www.sandbarnewhope.com
The Landing Restaurant     215.862.5711     22 North Main St. New Hope, PA www.landingrestaurant.com
Logan Inn        215.862.2300     10 West Ferry St. New Hope, PA  www.loganinn.com
The Mansion Inn      215.862.1231     9 South Main St.New Hope, PA  www.themansioninn.com
Harlans Restaurant & Cabaret     215.862.5221     6425 Lower York Road New Hope, PA www.harlansrestaurantnewhope.com
Triumph Brewing Company      215.862.8300     400 Union Square Dr New Hope, PA  www.triumphbrewing.com
Tuscany at the Towpath House      215.693.1599     18 West Mechanic St.New Hope, PA www.tuscanytowpathhouse.com
Villa Vito Restaurant       215.862.9936     26 West Bridge St.New Hope, PA  www.villavitorestaurant.com

Open houses as selling tool, Yardley, Newtown, Bucks County, Pa.

I saw a video the other day, done by a local agent, promoting all the reasons that sellers should hold open houses, as an effective marketing tool.

I was asked to do a video that explains the real reasons that agents hold open houses, and to explain why I generally do not think that they are very effective, as a marketing tool.

If agents were honest with sellers, they would explain that the real reason agents want to hold open houses, is in hopes of attracting buyers who are not otherwise working with a realtor. The agent sitting the open house, then has an opportunity of selling that buyer, something else. My feeling is that the seller has hired me, to get their house sold for the highest possible price, in the shortest amount of time, and with as little inconvenience to the seller as possible. The seller has not hired me to use their home as a tool to attract additional business. If you don’t believe this is true, stop into any real estate office during the week, and listen to agents offering to sit open houses, because they need business. The number of times that a buyer acutally buys the house they came to see, is extremely small.

An open house is the most passive type of marketing. Agents put a sign in the ground, and hope warm bodies show up.

Real important question; how do you know whether the people who show up are qualified? I find that buyers who wander aimlessly from open house to open house, tend to be the least motivated buyers. I feel that I have an obligation to the sellers whom I represent, to ensure that every person who steps into their house, is qualified.

I have also seen open houses, where there are sets of people wandering through the house, many times with kids, totally unsupervised. The realtor sitting the open house is really only able to help one person at a time. I don’t think I represent sellers interests very effectively, when groups of people whom I don’t know, and whom we really don’t know their qualifications to be in the house at all, are allowed to wander through my sellers house, alone.

I believe in pro-active marketing. Open houses are very traditional, and very passive. I think the best marketing strategy in today’s enviornment, requires professional photography, a massive on-line pressence to as many websites as possible, virtual tours, video as well as the use of social networking exposure, and direct communication to other real estate professionals.

I welcome your thoughts and comments about open houses.

Newtown Township Real Estate, 10 year price comparison chart.

Today, I wanted to review with you, the same 10 year price comparison chart, for single family, residential homes, in Newtown Township, Bucks County, that I reviewed for Lower Makefield Township, in my last post.

I find these graphs a very easy and clear representation, of the direction prices have taken, over the past 10 years. It is pretty interesting to me, that from a price perspective, the average price of a single family home in Newtown, has only dropped about 6% from the peak, which was in 2006.

 

I also added units to this chart, and from that perspective, there has been a much more pronounced change. In 2004, there were 360 homes that sold, while in 2009, there were only 224. Although the volume has fallen substantially in Newtown Township, prices have held up extremely well.

As I have mentioned before, real estate is very, very local. We would find differences if we examine neighborhood by neighborhood, even within the same township.

As always, I welcome your thoughts and comments.

Own real estate in Lower Makefield Township, 10 year price comparison chart.

Another in a series of statistical look at the real estate market, this time in Lower Makefield Township, in Bucks County.

I love this very simple to follow chart that we put together, that shows the average price of a home in Lower Makefield, starting in 2000.   This is really easy to follow, and shows very clearly, what the price appreciation and/or depreciation, has done each year.

Looking at the graph, you can see that average prices today, are about where they were in the middle of 2004.  People actually ask me all the time, where pricing is, compared with prior years.  The graph shows that very clearly.

You can see that for folks who are in older neighborhoods, like YardleyHunt for example, who bought more than 10 years ago, values today are still considerably higher than where they were in 2000.

Hopefully this chart will provide some guidance as to exactly where real estate prices stand, compared with prior years, in Lower Makefield Township.  I will provide the same chart, for some of the other markets that I cover, like Newtown, in future posts.

As always, I welcome your thoughts and comments.

Real Estate market trends, Bucks County, Pa.

Bucks County real estate market update, January 2010.

People ask me all the time, how is the real estate market, in Yardley, Newtown and all over the Bucks County area. 

For those who know me, you know that I do take the time to do very comprehensive statistical reviews.  With that in mind, I wanted to spend a few minutes, reviewing a few market statistics, from January. 

Obviously it is too early to develop any meaningful trends for the entire year, but we can compare where we stand as of the end of January 2010, with prior years.

Here are a few points, that generally apply to the entire Bucks County area:

• For the month of January 2010, volume of sold units, was positive in most markets, county wide.
• Total Bucks County January average sold prices were actually up 7%, over a year ago.
• Total unit volume for January was 14% higher than a year ago.
• Inventory was also up sequentially from December 2009, County wide, and some areas were up and some down, from a year ago.
• In virtually every market that I track, throughout Bucks County, months of inventory still suggest a buyers market.  We consider a balanced market to exist when there is approximately 6 months of inventory.  Less, indicates sellers markets, more means conditions favorable to buyers.  Bucks County wide, there is a 9.3 month supply of inventory. 
• Lower Makefield has a 9 month supply of homes, as of the end of January.
• Pending sales was stronger in most parts of the County, at the end of January. 
• Average list prices of homes in inventory as of January 2010, in all of Bucks County, was down somewhat, from last year.  Shifting inventory pricing trends, generally correlate to improving unit sales volumes.
• Sold/List ratios in most markets, continue to show that overall, buyers are achieving approximately 9% off the original asking price.

Lower Makefield Township Results

• Inventory of homes for sale in January 2010 was 188
• Inventory of homes for sale in December 2009 was 174
• Inventory of homes for sale in January 2009 was 170.
• Unit inventory up 10.6% year over year, and up 14 homes sequentially from December 2009
• Average  price of a home for sale in January 2010 was $492,000.
• Average price of a home for sale in January 2009 was $558,000.
• List price in inventory was down 11.8%
• 14 homes sold in January 2009 at 90% of list price.
• 15 homes sold in January 2010 at 91% of list price.
• Units sales volume up 7.1% year over year, contrasted with full year 2009 unit sales volume which was up 1.6%.
• Inventory is currently at 8.8 months, which indicates that the buyers market continues. 
• Average days on the market is now 86 versus 68 last year.

I have all sorts of graphs and charts, that will show a statistical overview of every market I cover.  I will report on those areas, like Newtown, Upper Makefield Township, Newtown and Newtown Township, in future posts.  If you would like to see any of the charts or graphs, for a specific area, please let me know.

What does all of this mean for buyers and sellers?  Basically, market dynamics continue to favor buyers.  Sellers, as always, need to be realistic, if they intend to sell.  Still uncertain, as to what will happen when the tax credit expires, at the end of April.

Guess how long its taking to sell expensive homes, in Lower Makefield Township, Bucks County, Pa.

Selling houses in Yardley and Lower Makefield Township.

The single most important discussion I ever have with a seller, is the discussion about price. I always try and impress upon sellers, how absolutely critical it is, to price a home correctly.

I have also reported previously, that the market for higher priced homes, is more challenging than the market for homes priced more moderately. The reason for that, among other things, is becuase of the first time home buyer tax credit.

To drive home the point I have been making, I started with homes for sale in Lower Makefield Township, in Bucks County. I compiled a list of all homes for sale in Lower Makefield, priced from 600,000 to whatever the most expensive listings were. As you can see from the chart that follows, there are 29 homes for sale, priced between 600,000 & 1,495,000.

I charted the total number of days on the market for each home.

I eliminated any new construction, since they tend to skew the statistics because of how long new construction homes remain on the market.

107 Shelly Lane	$619,000	75
1505 Pownal	$619,900	104
837 Sandy Run	$625,000	11
1340 Jacob Dr.	$629,000	138
4 Houston	$639,900	208
704 Long Acre	$645,000	129
1023 Victory	$649,500	5
361 Twig	$649,900	271
2200 Yardley Rd.	$649,900	29
2117 Stackhouse	$649,900	751
1277 Clearview	$649,900	601
919 Hunt Drive	$658,000	263
621 Grindan	$669,000	19
1353 Heller	$679,500	22
660 Grindan	$694,900	18
1485 Brookfield	$695,000	131
1440 Windrow	$699,900	285
1241 Briddle Ests.	$715,000	477
1083 S. Kimbles	$717,000	247
778 Mill Road	$729,900	268
1743 Jockey’s Way	$759,900	152
1561 Quarry Rd.	$799,000	117
1623 Makefield Rd	$835,000	225
2014 Silverwood	$849,900	832
1644 Powderhorn	$899,900	240
2061 Silverwood	$974,900	638
175 Mt. Eyre Rd	$1,185,000	68
1995 Timber Lakes	$1,295,000	24
1509 Quarry Rd.	$1,495,000	299

What I found was, that the average days on the market of the 29 homes for sale, was 230! That is a sobering statistic, especially for a seller who is motivated, and really wants to move. If I eliminate the 3 houses that have been on the market the longest, the average days on the market, for houses priced above 600,000 in Lower Makefield Township, is 171. Still, quite a long time.

I can examine similar stats from other communities, like Upper Makefield Township and Newtown Township, but the results will be somewhat similar.

There have been a total of 46 homes that have closed, in the past 12 months, priced above 600,000 in Lower Makefield Township. This represents more than 8 months of inventory, based on the current rate of absorption.

So, the critical message to sellers, is to be as realistic as possible, in pricing your home. There are buyers, but as you can see, there are many homes that have been on the market for a long time. Price your house correctly, make sure it shows as well as possible, market it properly, and it will sell in a reasonable time frame.

I always welcome your thoughts and comments.

Yardley, Newtown, Bucks County sellers, for goodness sake, let the agents in!

My most recent video rant, about sellers who make it difficult to show their home. 

Had a buyer today, who is very motivated.  House is sold, and they need to find a home in Yardley, Newtown or close by, by the end of March.  Had 7 houses to show them today. 

Sellers of 4 houses of the 7, decided that this was a bad weekend, bad time, bad morning, bad afternoon, bad month….you get the idea.  Here is a memo to sellers.  No one will buy your house, unless they are allowed in to see it.  I realize that it is not fun, to sell your house.  Why not price it right, make sure it shows as well as possible, improve the condition, wherever possible, and encourage showings.  That way, you won’t prolong the agony. 

As a postscript, to my video rant, the buyers did find something they liked, and we wrote an offer.  To the 4 sellers who were too busy, they lost a chance with a very motivated, and realistic buyer.  Is it any wonder that homes are often on the market for months and months and months.

As always, let me know your thoughts.

1458 Clinton Drive, Yardley, Pa. 19067 Yardley Hunt house for sale.

I wanted to share my recent slideshow of  this absolutely stunning, lovingly maintained and updated home in Yardley Hunt. Gleaming hardwood floors; fabulous, gourmet center island kitchen  with granite counters, sub-zero, stainless appliances, 42” cabinetry, truly a chefs delight. Glorious, large and bright, sun-room/Florida room, that can be enjoyed all year long! Warm and inviting family room, with wood burning fireplace. Master bedroom suite offers a comfortable sitting room, and sumptuous, expansive bath, with unique, custom shower. 2 huge, walk-in closets, including finished space above garage. Multi-tier deck overlooks the private, fenced rear yard. All major systems and mechanicals have been replaced and upgraded,including siding, hvac and roof. Large laundry/mud room.  Convenient location close to major highways, trains, township facilities and shopping.